© Reuters. Nutanix (NTNX) has ‘multiple positive growth levers’ – BofA
Nutanix (NASDAQ:) was upgraded to Buy from Neutral with a new price target of $50 per share, up from $39 at BofA on Thursday.
BofA analysts told investors in a note that there are multiple positive growth levers for the company, including share gains.
“We see fundamentals improving over the next few years, including ACV billings, revenue, and operating margin,” they wrote. “We see renewals driving a higher portion of ACV billings growth post-F24, which can lead to more stable revenues, and expect operating leverage through lower cost of renewals.”
“The new “GPT-in-a-Box” offering, Cisco (NASDAQ:) partnership, and potential share gains are upside levers,” the analysts added.
They added that the next catalyst for the stock is the company’s analyst day on September 26, and they expect NTNX to guide above Street estimates ” but be conservative relative to what can be accomplished.”
“We expect NTNX to guide F25 ACV billings to $1.3-1.4bn, OP to $300-400mn, and FCF to $350-450mn (Fig 9-11). We expect NTNX to guide F27 ACV billings to $1.9-2.0bn, OP to $500-600mn, and FCF to $550-650mn,” they concluded.
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